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PPPay.com HelpDesk > FAQ > Escrow

Escrow FAQs Read below for info on using our Escrow service for peace of mind.

Questions
  1. What is escrow ?
  2. Why use escrow payments ?
  3. How much does it cost ?
  4. How does escrow payments work ?
  5. What is the seller does not enter a tracking number ?
  6. Escrow Scenarios

Answers
1. What is escrow ?
The dictionary definition of Escrow is "Money held by a third party until the conditions of an agreement are met. For instance, pending the completion of a purchase, the payment for the goods will be held in escrow."
2. Why use escrow payments ?
If you are paying for an item and you have not dealt with the seller before, an escrow payment will give you the protection you require and peace of mind.

If you are purchasing from anyone, either a medium unknown web-site or from an online auction site, and they insist on you sending the money before you send the goods - watch out! You should insist on using an escrow service, or be prepared to lose your money.

The rate of fraud on the Internet is growing rapidly. There is no reason why a seller would object to using escrow. If a seller is reluctant to use escrow service it should ring warning bells !

3. How much does it cost ?
  • There are no extra charges for receiving Escrow payments.
  • Sending payments via Escrow an extra fee of, £0.99 or $1.79 or €1.59

    Therefore, as an example, if you are paying £100.00 from your PPPay account balance to a seller for an item, PPPay.com will request a transfer of £100.99 (£0.99 PPPay.com escrow fee). Once you have confirmed and made payment via PPPay.com escrow the seller will receive an email notification immediately and will see £100.00 in their pending transaction but will be unable to access the funds.

    Once the seller has shipped the goods by Royal Mail, City-Link.co.uk, UPS or Parcelair.com, and you have received and signed for, the funds will be released to the sellers account after the 24hrs inspection period. (See scenarios below for rejection of goods)

  • 4. How does escrow payments work ?
    1. Auction closes.
    2. Buyer and seller both agree to use escrow payments for their transaction.
    3. Buyer sends an escrow payment to sellers PPPay.com account. This money is then held by PPPay.com.
    4. Seller receives confirmation that payment has been received into escrow.
    5. Seller sends goods via the Royal Mail Recorded/Special Delivery, city-link.co.uk, UPS or Parcelair.com for overseas Deliveries making sure the goods value is entered correctly for insurance purposes. Seller returns to PPPay.com and enters the track and trace ID. Buyer is notified that goods have been posted.
    6. Buyer receives, signs for, and inspects the goods for up to 24 hrs - making sure they match what they purchased. Seller is notified the goods have arrived.
    7. Buyer accepts the goods within the 24hr inspection period or acceptance will be automatic after the 24 hr period. Money is made available to seller to accept.
    8. Seller accepts money.
    5. What if the seller does not enter a tracking number ?
    Escrow transactions are self-refundable back to your PPPay.com account 30 days (30 for internal payments) after the transaction was initially started (if no tracking number was entered by the seller) When you view the transaction status after this time you will see the option to decline the transaction.
    6. Escrow Scenarios
    Scenario 1 - A Successful Transaction
    1 Alan (Seller) and Debbie (Buyer) both agree to use escrow payments for the purchase of a Camcorder including insurance and postage worth £700.00
    2 Debbie pays £700.00 to Alan through escrow payments
    3 Alan receives confirmation that the funds are in PPPay.com escrow and sends the camcorder by track and trace as required, and enters the track and trace ID into PPPay.com to confirm that the item has been sent
    4 Debbie receives, signs for, and inspects the camcorder
    5 PPPay.com confirms with Royal Mail's track and trace that the goods have arrived and have been signed for. PPPay.com releases the payment to Alan after the 24hr inspection period
    Result
    Alan is happy because he has sold the camcorder and he has confirmation that the goods arrived safely
    Debbie is also happy because she has a new camcorder and did not need to worry about sending such a large amount of money to someone she does not know. She is also comfortable in the knowledge that she had a 24hr inspection period and had the chance to inspect the camcorder before the funds were released to the Seller
    Scenario 2 - When Debbie receives the camcorder but it is damaged.
    1 Alan (Seller) and Debbie (Buyer) both agree to use escrow payments for the purchase of a Camcorder including insurance and postage worth £700.00
    2 Debbie pays £700.00 to Alan through escrow payments
    3 Alan receives confirmation that the funds are in PPPay.com escrow and sends the camcorder by Royal Mails Recorded or Special delivery method that are automatically insured, and enters the track and trace ID into PPPay.com to confirm that the item has been sent
    4 Debbie receives, signs for and inspects the camcorder. Debbie notices that the camcorder is damaged and reports this to PPPay.com within the 24hr inspection
    5 PPPay.com holds the payment
    6 Debbie sends the camcorder back by track and trace
    7 Alan accepts the camcorder back.
    Result
    Alan fills out a claim for the damaged goods with the track and trace carrier
    Debbie is refunded the £700.00. She has had to pay the cost of returning the camcorder and the PPPAY 99p escrow fee, but she is not out of pocket for the payment of the damaged camcorder
    Scenario 3 - When Debbie receives the camcorder and it is damaged. Alan claims that the damage was not there when he sent the camcorder and refuses to take it back
    1 Alan (Seller) and Debbie (Buyer) both agree to use escrow payments for the purchase of a Camcorder including insurance and postage worth £700.00
    2 Debbie pays £700.00 to Alan through escrow payments
    3 Alan receives confirmation that the funds are in PPPay.com escrow and sends the camcorder by Royal Mail's Recorded or Special delivery track and trace as required, and enters the track and trace ID into PPPay.com to confirm that the item has been sent
    4 Debbie receives, signs for and inspects the camcorder. Debbie notices that the camcorder is damaged and reports this to PPPay.com within the 24hr inspection
    5 PPPay.com holds the payment.
    6 Debbie sends the camcorder back by track and trace
    7 Alan refuses to sign for the goods with Royal Mail
    8 PPPay.com refund Debbie
    Result
    Alan decision not to accept the recorded delivery has left him in limbo. This is his decision and is not PPPay's responsibility
    Debbie is refunded the £700.00. She has had to pay the cost of returning the camcorder and the 99p escrow fee but is not out of pocket for the camcorder.
    Scenario 4 - Debbie rejects the camcorder because it is not the same model of camcorder described by Alan on his Internet auction listing
    1 Alan (Seller) and Debbie (Buyer) both agree to use escrow payments for the purchase of a Camcorder including insurance and postage worth £700.00
    2 Debbie pays £700.00 to Alan through escrow payments
    3 Alan receives confirmation that the funds are in PPPay.com escrow and sends the camcorder by Royal Mail's track and trace as required, and enters the track and trace ID into PPPay.com to confirm that the item has been sent
    4 Debbie receives, signs for and inspects the camcorder. Debbie notices that the camcorder is not the same model as described in the auction listing and reports this to PPPay.com within the 24hr inspection
    5 PPPay.com holds the payment.
    6 Debbie sends the camcorder back by track and trace
    7 Alan accepts the camcorder back
    8 PPPay.com refund Debbie
    Result
    Alan accepts that he sent the incorrect model from what was described at auction
    Debbie is refunded the £700.00 by PPPay.com. She has had to pay the cost of returning the camcorder and the 99p PPPAY escrow fee )

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